In a significant move aimed at enhancing investor convenience and reinforcing trust in India’s capital markets, the Securities and Exchange Board of India (SEBI) has issued a new circular dated July 2, 2025. The circular introduces a special six-month window for the re-lodgement of physical share transfer requests that were initially submitted before April 1, 2019 but were rejected, returned, or left unprocessed due to document deficiencies or other procedural issues.
Background
SEBI had discontinued the transfer of securities in physical mode effective April 1, 2019, to promote transparency and efficiency through digitization. However, recognizing that some transfer requests submitted prior to this date were rejected or returned due to errors, SEBI had earlier allowed a re-lodgement period up to March 31, 2021. Despite this, numerous investors failed to re-lodge their documents in time, leading to widespread concern and appeals.
The New Re-Lodgement Window
After reviewing representations from investors, Registrars and Share Transfer Agents (RTAs), and listed companies, SEBI convened a panel of experts including legal advisors and market intermediaries. Taking into account the panel’s recommendation, SEBI has now granted a one-time opportunity for affected investors to re-lodge their transfer requests.
The special window will be open from July 7, 2025, to January 6, 2026.
Key Highlights
Eligibility: The window applies only to transfer deeds originally lodged before April 1, 2019, which were rejected or not acted upon due to documentation or procedural issues.
Dematerialized Transfer Only: All re-lodged shares during this window will be transferred directly into demat form. No physical share certificates will be reissued.
Investor Protection: This initiative is in line with SEBI’s core mandate to protect investor interests and promote ease of doing investment.
Implementation & Oversight
Publicity Measures: Listed companies, RTAs, and stock exchanges are required to publicize the special window bi-monthly through print and socal media to ensure widespread awareness.
Dedicated Teams: RTAs and listed companies must set up specialized teams to handle these re-lodgement requests promptly and efficiently.
Reporting: Monthly reports covering both publicity efforts and statistics on re-lodged shares must be submitted in a SEBI-specified format.
What This Means for Investors
This circular offers long-awaited relief for investors who, for various reasons, missed the earlier 2021 deadline. Whether due to oversight, procedural complexity, or logistical delays, many had found their investment rights in limbo. With this renewed opportunity, they can now claim ownership of their securities and have them moved to their demat accounts—aligning with SEBI’s broader push towards a paperless and transparent securities market.
